America Inc complains to Obama on India's unfair policies

America Inc complains to Obama on India's unfair policies

Close on the heels of the missive by Ajay Banga, chairman of the US-India Business Council and president and CEO of MasterCard Worldwide, to President Obama urging him to prevail on Indian Prime Minister Dr Manmohan Singh to address America Inc's deep and growing concerns vis-a-vis trade and investment in India, the US Chamber of Commerce has written the President complaining of India's discrimination against a wide range of US exports.

Last month, in his letter, provided exclusively to India Abroad, Banga wrote to Obama that "We hope that in the upcoming meetings with your Indian counterparts you and your administration will drive home the importance of addressing the key Indian practices at issue and assure them that this country is prepared to be India's full partner provided that India does its share."

Acknowledging that addressing such a demanding agenda will be tough, he noted, "We ask for attention to these issues because they are timely and important to India's pursuit of growth and to US interests."

On June 6, the Chamber joined 16 other business associations in signing a letter to Obama highlighting the detrimental implications of India's discriminatory policies against foreign businesses.

America Inc complains to Obama on India's unfair policies

The letter said that this alleged discrimination by the government of India was "jeopardising domestic jobs, and putting at risk a growing bilateral trading relationship worth more than $60 billion last year."

It said, "Our associations, which collectively represent small, medium, and large US companies throughout every major sector in the US economy - from manufacturing to agriculture to services - believe the United States must push for fair trade with India."

The coalition in its letter said, "Over the last year, the courts and policymakers in India have engaged in a persistent pattern of discrimination designed to benefit India's business community at the expense of American jobs."

America Inc complains to Obama on India's unfair policies

The letter added, "The government of India recently demanded that as much as 100 per cent of its market for certain information technology and clean energy equipment must be satisfied by firms based domestically."

The Chamber and its partners said, "These actions and others constitute a disturbing trend that may continue and even expand to other products, sectors, and countries," and noted that "already there are indications that other countries are considering similar measures."

It stated that such actions are completely at odds with recognised global norms and raise troubling questions about India's compliance with its international obligations to protect ideas, brands, and inventions and to treat imported goods no less favourably than domestic productions.

America Inc complains to Obama on India's unfair policies

The coalition said, "These actions are unacceptable for a responsible middle-income country and rising global power to treat its second largest export trading partner."

It added, "They are counterproductive to India's stated goals to attract capital and to develop its own innovative economy. Forcing local production and seeking to profit and create jobs through the rejection of basic property rights undermines India's ability to achieve the type of long-term foreign investment that is so essential for sustainable growth and job creation."

The coalition called for an end to discrimination against US exporters, urging the US government to immediately to initiate bilateral engagement at the highest levels and to coordinate closely with the European Union and other like-minded economies.

The coalition said that "if this engagement is not fruitful, we ask the US government to respond purposefully, using all available trade tools and diplomatic engagement."

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Image: A college student cheers after getting her face painted with the tricolour Indian national flag.Photographs: Ajay Verma/Reuters.

America Inc complains to Obama on India's unfair policies

"Reversing discrimination and restoring trust," the Chamber and the other associations said, 'would be a win-win -enabling domestic exporters to further invest in India's future and helping India grow its economy and create opportunities for its people.

Besides the President, the letter was also copied to Secretary of State John D Kerry, Treasury Secretary Jacob Lew, as well as the US Trade Representative-designate, Mike Froman.

The signatories to the letter to Obama, included, Jay Timmons, president and CEO, National Association of Manufacturers, Thomas J Donohue, president and CEO, the US Chamber of Commerce, Jay Vroom, president and CEO, CropLife America, Jim Greenwood, president and CEO, Bio, Grant Seiffert, president, Telecommunications Industry Association, John Castellani, president snd CEO, PhRMA, Peter Robinson, president and CEO, United States Council for International Business, Evan Gaddis, president and CEO, National Electrical Manufacturers Association, Brian Toohey, president and CEO, Semiconductor Industry Association, Gary W Price, CEO, Dental Trade Alliance and William A Reinsch, president, National Foreign Trade Council.

Image: Workers at their workstations on the floor of an outsourcing centre in Bangalore.Photographs: Vivek Prakash/Reuters